Everyone has heard the saying that buying real estate is one of the biggest investments you can make. Because it’s one of the biggest real estate investments you can make, it can also be one of the most expensive mistakes, if not the most expensive mistake, you will ever make in your life. In this article, we’ll cover five ways to ensure you pick the property that is right for you so you don’t make this mistake.
1. Establish Your Budget
Understand Your Financial Health
The first critical step in real estate investment is to establish your budget. There’s no point in looking at properties that are way out of your budget range. Even if you can technically afford them with a very high mortgage, you have to think: Can you realistically afford it if things go wrong?
Consider All Expenses
You need to consider all possible expenses, including maintenance and servicing. For this reason, you need to look at your own financial health and take a realistic view of what you can afford. Once you’ve set a budget and found out what you can afford, it makes the whole process easier. You’ll know what’s within and outside your budget, so set an appropriate budget.
2. Location, Location, Location
Why Location Matters
The second point is location, location, and, you guessed it, location. It’s said time and time again because location is the most critical factor when you’re buying a property.
Extreme Examples for Emphasis
Imagine you’re in your dream forever home. It’s got a swimming pool, amazing green lawns, trees, and the inside is absolutely stunning. However, it’s located in a Brazilian favela. There are gangs outside, people selling drugs, litter, sewage, and it’s dangerous for your kids. It’s not a pleasant environment to be in. Or, you have the option of a very simple cottage in England. There’s nothing special about the cottage, but it’s in a really nice area. It’s in a small village with trees, parks, lovely neighbors, and the kids can walk to school and play outside. It’s a very pleasant area to be around. Many of you would pick the nice cottage.
Critical Location Factors
Before buying a property, consider these critical factors:
- Lifestyle: Do you have a family? Do you like peace and quiet? Is nature important to you? Do you prefer convenience?
- Logistics: How long is your commute to work each day? Are there schools nearby, and what’s the traffic like to get to those schools? Is there a bus that runs near that location?
Special Note for Dubai Buyers
In Dubai, especially, it can be very confusing because there are so many different areas to pick from. Therefore, if you need any help, please book a call in the link below, and I’ll be more than happy to help you run through different areas and what would be most appropriate for you and your budget.
3. Research the Developer
Why Developer Reputation Matters
The next critical point is the developer. Who actually developed the property you’re going to buy? If it’s a villa community, it’s likely planned by master developers. Some of these are Emaar, DAMAC, and Nakheel.
Differences Among Developers
These developers offer slightly different products. For example, Emaar is probably the most reputable developer in Dubai. They not only offer very good products in terms of the houses and villas themselves, but they also invest a lot into community facilities. With Emaar developments, you’re likely to get nice swimming pools, nice landscaped areas, and they really care and invest in family communal facilities. This might be something to consider if you have young kids.
4. Assess the Property’s Amenities
Community Facilities
Assessing the property’s amenities is crucial. Community facilities like swimming pools, tennis courts, and basketball courts are important, especially if you have kids, so they can easily access them.
Personal Amenities
Before you buy a property, check out the communal facilities. Also, check out your own property’s facilities. You might, for example, want a property with a swimming pool, or you might not care about a swimming pool but want some nature, trees, and greenery. In Dubai, this is something that can be lacking. Therefore, if this is important to you, buy a property that either has space to invest in this or already has a mature garden.
5. Consider Potential Resale Value
Future-Proof Your Real Estate Investment
The final point is to look at the potential resale value. If you go to sell your property in 10 years and have absolutely no buyers, you then have to keep dropping the price until you eventually find a buyer. That’s where it can be the biggest mistake of your life, and you can basically lose your entire net worth.
Follow the Steps to Ensure Resale Value
If you follow the above four points, hopefully, you shouldn’t be in this position because you’ve picked a property in the right location, with the appropriate amenities, from a reputable developer, and with good community facilities. If you’ve picked all of these things, you should have potential buyers in the future, leading to a higher resale value.
Conclusion
Picking the right property can make you a lot of money and also provide you with an amazing home for yourself and your family. However, if you pick the wrong property in the wrong location, you’re set to lose a lot of money. Be mindful of your budget, prioritize location, research your developer, assess amenities, and consider resale value to make a wise real estate investment.
FAQs
1. What should I consider first when buying a property?
The first thing to consider is your budget. Ensure you know what you can realistically afford, including all associated costs.
2. How important is the location of a property?
Location is extremely important as it impacts your daily life, safety, and the property’s future resale value.
3. Why should I research the property developer?
The reputation and track record of the developer can affect the quality of construction and the community facilities available.
4. What amenities should I look for in a property?
Look for amenities that match your lifestyle and family needs, such as swimming pools, parks, and sports facilities.
5. How can I ensure good resale value for my property?
Choose a property in a desirable location, developed by a reputable builder, with good amenities and future growth potential.
